An estimated 4 million small businesses could be eligible for federal tax credits under the new healthcare reform law that would assist them in covering health insurance costs for their employees, administration officials announced Monday. The tax credit, which has an effective date of Jan. 1, 2010, can cover up to 35% of the premiums a small business pays to cover its workers; by 2014, that rate will increase to 50%, and small business owners will have the chance to access plans through health insurance exchanges. Firms can claim credit for up to six years--2010 through 2013 and for any two years after that.

Nine hospitals in seven states will pay the federal government more than $9.4 million to settle whistleblower allegations that they overcharged Medicare for spinal kyphoplasty procedures, the Justice Department announced. The Department of Justice said in a media release that the settlements resolve allegations that the hospitals overcharged Medicare between 2000 and 2008 when performing kyphoplasty, a minimally-invasive procedure used to treat certain spinal fractures that often are due to osteoporosis.

The cost of caring for patients who need readmission to California's acute care hospitals represents half of the Medicare and Medicaid bills incurred in the state, or $31 billion and $10 billion respectively for one year. That's according to a new report that looks at repeat patient admissions by age, region of the state, payer, and race. The report is one of the few in the country to track readmissions for 365 days after initial hospital discharge.

Universal Health Services, Inc. will acquire Psychiatric Solutions, Inc. in a deal that includes $2 billion to purchase PSI at $33.75 a share, and $1.1 billion to assume its debts, the two companies announced. Franklin, TN-based PSI is the nation's largest standalone operator of owned or leased freestanding psychiatric inpatient facilities with 94 facilities in 32 states, Puerto Rico, and the U.S. Virgin Islands. UHS owns or operates 25 acute care hospitals and 102 behavioral healthcare facilities and schools in 32 states, Washington, DC, and Puerto Rico.

The Department of Health and Human Services is preparing two surveys that aim to gather information about patients' preferences and satisfaction with electronic health records and personal health records in order to improve nationwide HIT adoption efforts.

When Cal/OSHSA raised the healthcare workplace safety stakes by enforcing its aerosol transmissible disease standard last year, many OSHA watchers expected the agency to follow suit with a similar standard. Now it seems the feds are raising the stakes by two transmission modes.